How to Find the Funds to Start a Funeral Home Business

by Sara Melone; Updated September 26, 2017
The funeral business requires significant start-up costs.

The process of starting any business can be a challenge when trying to secure initial start-up costs to pay for licensing, permits, location, and product inventory. The costs of starting a funeral home business can be even more overwhelming, given the high price of medical-grade embalming equipment, supplies, caskets, and location. Finding a method to secure those substantial start-up funds can be easy if you know where to look.

Step 1

Apply for a small business loan by speaking with a national bank or a local credit union. Bring a copy of your business plan and any other relevant documentation such as research showing the viability of a funeral home business in your location. If you have good credit and a solid business plan, and if there appears to be a need for a funeral home in your area, you may be able to secure a small business loan. Be sure to provide all requested documentation to the bank or credit union in a timely fashion throughout the application process.

Step 2

Contact the federal Small Business Administration to request assistance acquiring the funds for your funeral home business. Research other federal, state, or local sources of funding.

Step 3

Seek private or small business venture capital from groups or individuals that provide financing for small business owners and entrepreneurs. The requirements to qualify for financing may be less stringent in some cases, although the rate of interest on borrowed funds is typically much higher in order to provide a return on investment for those lending their money. Individuals and groups providing private and small business venture capital can be found online or through local advertisements in newspapers and business magazines. Seek online sources of information as well.

Step 4

Recruit investors to become part of your funeral home business. You can advertise in the local paper or seek investors in online forums, or you can just recruit your friends and family as investors. Provide each potential investor with a complete copy of your business plan, which should outline how much start-up capital you will need to open the funeral home. For each individual investor, draw up a contract that details exactly when and how the funds will be repaid or what percentage of profit the investor will be entitled to in return for a financial investment.

Step 5

Invest your own personal funds if possible. You can withdraw money from savings, take out a home- equity loan, or put it on a credit card. Just be careful not to draw more credit than you will be able to pay back within a few years. Remember also that credit-card interest can be prohibitive.

About the Author

Sara Melone is a mother of three and a graduate of UNH. With prior careers in insurance and finance, photography, as well as certifications in fitness and nutrition, Melone draws directly from past experience and varying interests. She contributes with equal passion to birth journals, investment blogs, and self-help websites.

Photo Credits

  • Thai funeral image by Adrian Hillman from